After another great year (+50%), I am really starting to feel that I might not be just lucky... And I feel the urge to brag about it. I navigated successfully the most dangerous year for put sellers since 2008 and I made exceptional returns. I had a relatively big drawdown (-30%) but the plan paid off. And it would have been better if I had resisted the temptation of selling calls early in the year, pro COVID. I seriously considered many views expressed in this thread and I cut down my exposure by half and this probably saved me during the crash. I am really thankful for that
Keep in mind IV was very high most of the year..I don't think we will see those levels,making the put selling business much tougher.. Dont be a one trick pony and congrats on a great year
Fang vol was really good. TSLA was really great for some people too. Are you looking at doing other strategies now that vol has dropped significantly
best environment in a decade. Government dumped a trillion dollars into the stock market. Our only job was to figure out how to divide it. in 2021 it will go back to being a cage match again.
Im afraid you are 100% right... Im going to attempt to be more directional in 21..First time for everything
Have no choice but to look elsewhere or hope for some sort of a dislocation... AAPL and TSLA were 90 percent of my P and L.. At this vol I am looking at split strike flys (as opposed to ratios),diaganols,calendars... Probably have a bit more delta than I did in 2020...